Correlation Between Indutrade and Vitec Software
Can any of the company-specific risk be diversified away by investing in both Indutrade and Vitec Software at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Indutrade and Vitec Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indutrade AB and Vitec Software Group, you can compare the effects of market volatilities on Indutrade and Vitec Software and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Indutrade with a short position of Vitec Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indutrade and Vitec Software.
Diversification Opportunities for Indutrade and Vitec Software
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Indutrade and Vitec is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Indutrade AB and Vitec Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitec Software Group and Indutrade is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Indutrade AB are associated (or correlated) with Vitec Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitec Software Group has no effect on the direction of Indutrade i.e., Indutrade and Vitec Software go up and down completely randomly.
Pair Corralation between Indutrade and Vitec Software
Assuming the 90 days trading horizon Indutrade AB is expected to generate 0.85 times more return on investment than Vitec Software. However, Indutrade AB is 1.17 times less risky than Vitec Software. It trades about 0.03 of its potential returns per unit of risk. Vitec Software Group is currently generating about -0.07 per unit of risk. If you would invest 22,900 in Indutrade AB on September 2, 2025 and sell it today you would earn a total of 520.00 from holding Indutrade AB or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indutrade AB vs. Vitec Software Group
Performance |
| Timeline |
| Indutrade AB |
| Vitec Software Group |
Indutrade and Vitec Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indutrade and Vitec Software
The main advantage of trading using opposite Indutrade and Vitec Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indutrade position performs unexpectedly, Vitec Software can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vitec Software will offset losses from the drop in Vitec Software's long position.| Indutrade vs. ExpreS2ion Biotech Holding | Indutrade vs. Addtech AB | Indutrade vs. JonDeTech Sensors | Indutrade vs. New Nordic Healthbrands |
| Vitec Software vs. Lime Technologies AB | Vitec Software vs. Addtech AB | Vitec Software vs. JonDeTech Sensors | Vitec Software vs. Lundin Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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